Effect of energy transition, R&D investments in energy, income, and energy use on the environment: Evidence from advanced countries by KRLS method

Countries have been concerned about the energy transition and related research and development (R&D) investments in energy to combat environmental degradation due to their beneficial effects on energy use as a critical factor in environmental change. Accordingly, the study uncovers the marginal effects of the energy transition, renewable and nuclear energy R&D investments, income, and energy use on carbon dioxide emissions (ecological footprint for robustness) in six advanced countries by using data from 2000 to 2022 and performing the Kernel-based Least Squares method, which provides marginal effect across percentiles. The results show that energy transition only develops the environment in France. Moreover, R&D investments in renewable (nuclear) energy are beneficial for the environment in France and the UK (the US and the UK). Moreover, income is helpful in most countries, except Japan and the UK. On the other hand, energy use is harmful in all countries. Thus, the results present the beneficial effect of R&D investments in energy and the less helpful effect of the energy transition. Thus, France, the UK, and the US have a better position to benefit from the energy transition and energy-related R&D investments.